This course covers the various models available for equity valuation. It includes discussions of the dividend discount model, Porter analysis, DuPont decomposition of ROE, sustainable growth rates, earnings quality, and accounting fraud. It also covers relative valuation measures such as price/earnings and price/sales ratios. The valuation techniques taught in the course will be applied to the valuation of equity shares, corporate bonds, and derivatives such as stock options and convertible bonds. Completion of a comprehensive analysis of a public company is a requirement for the course. This course is recommended for students who are planning on sitting for Certified Financial Analyst (CFA) qualification.
[(MSF 504 with min. grade of C, MSF 505 with min. grade of C, and MSF 506 with min. grade of C)]